Sprouts Farmers Market LLC (SFM)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,148,550 | 1,115,010 | 1,075,150 | 1,050,930 | 1,046,460 | 1,040,830 | 1,013,690 | 1,011,970 | 959,876 | 968,083 | 949,123 | 966,870 | 881,293 | 807,946 | 743,277 | 670,722 | 581,952 | 559,921 | 531,649 | 556,521 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,148,550K
= 0.00
The debt-to-equity ratio of Sprouts Farmers Market Inc has shown a general increasing trend over the past 8 quarters, starting at 0.12 in Q4 2022 and reaching 0.26 in Q1 2022. This indicates that the company has been relying more on debt financing compared to equity financing during this period.
The increase in the debt-to-equity ratio may suggest that Sprouts Farmers Market Inc has been taking on more debt to fund its operations or expansion initiatives. While a higher debt-to-equity ratio can provide tax advantages due to deductible interest payments, it also increases financial risk as the company becomes more leveraged.
It would be essential for investors and stakeholders to closely monitor how Sprouts Farmers Market Inc manages its debt levels and whether it can generate enough earnings to cover interest expenses and debt obligations. Additionally, the company's future plans for debt repayment and capital structure adjustments may influence its overall financial health and stability.
Peer comparison
Dec 31, 2023